With the cannabis industry set to explode in the next couple years, we’ve seen investors attempt to find a way into the marketplace however possible. While some talk about a potential bubble, Canada’s soon-to-be adult-use cannabis industry is receiving projections of $1 billion in just its first three months.
Which might explain why NBA superstar Kevin Durant is entering the fray through his Durant Company. The company’s investment portfolio includes names like Postmates, Lime Bike, and the Player’s Tribune. Now it will add the marijuana delivery service Dutchie to its investments. And yes, Dutchie’s name comes from the song you’re thinking of.
According to TechCrunch, Dutchie just raised $3 million with investments from the Durant Company and Snoop Dogg’s Casa Verde Capital. Dutchie is the brain child of co-founder Ross Lipson. The company comes after Lipson’s online food delivery service GrubCanada was sold to Just Eat.
“There’s a lot of hype and speculation around the cannabis space especially in the public markets,” Lipson said. “It’s not a traditional way to go about a business of this size. We’re extremely excited and eager to partner with the investors that we did.”
Lipson explained that cannabis consumers face the same roadblock that would-be diners face when ordering food for the night. Normally you’re trapped with the options around you. But thanks to apps like Postmates, Uber Eats, and GrubHub, users have access to the whole city for options of where to eat. A similar thought process applies to what Dutchie is doing.
“We’re creating a tool that helps the user and consumer navigate the delivery space,” Lipson said. “We’re educating the consumer to that buying experiences…. If you don’t have that online ordering tool in front of you you’re forced to choose a dispensary and take the information that that ‘budtender’ gives you, which is their personal preference.”
Though Eaze is the biggest start-up in the cannabis delivery space, raising at least $37 million says TechCrunch, Lipson’s previous experience in the food delivery space poises him to succeed in a similar manner for the cannabis market. Currently Dutchie operates in Orgeon, Washington, and Michigan with plans to launch in Colorado, Nevada, and California this month. The $3 million Dutchie raised in a seed round came from The Durant Company, Casa Verde Capital, and Sinai Ventures, along with other angel investors.